Morning 10: Broadway Bank | Defense jobs threat | $3 gas

Members of the Giannoulias family asked a court to dismiss an FDIC lawsuit that blames former management of the family-controlled Broadway Bank for the bank's collapse in 2010. The government has alleged Broadway officials shrugged off its warnings and continued to make risky real estate loans in 2007 and 2008. But the defendants — including former Chicago Bear Jim McMahon, a onetime director — say in their motion that the FDIC is simply playing "Monday-morning quarterback" and relying on hindsight. Read more in Crain's

SPENDING CUTS THREATEN JOBS

Deep budget cuts due to hit the Pentagon in January would destroy nearly one million American jobs within one year, according to a National Association of Manufacturers analysis. The trade group's report is only the latest in a growing number of studies that warn of dire economic consequences if policymakers fail to avert about $100 billion in cuts to the Pentagon and non-defense programs next year. Read the Washington Post article here

LOCATION, LOCATION

The bank that seized a failed residential development on the Near West Side from prominent developer Daniel McLean has put the undeveloped 4.67 acre site up for sale. Read it in Chicago Real Estate Daily

HOUSE: ACCRETIVE RESPONSE 'INADEQUATE'

Medical billing services provider Accretive Health, which is under fire for allegedly violating patient privacy, has failed to provide internal documents sought by Congress, according to a letter two House members sent to Accretive CEO Mary Tolan. Details in Crain's

OFFER YOU CAN'T REFUSE

A local real estate investor ensnared in a City Hall corruption investigation has decided to sell all his Chicago apartment holdings, a portfolio that encompasses more than 1,000 units and could fetch in excess of $50 million. Chicago Real Estate Daily has the story

LIGHTS OUT FOR SARA LEE BAKERY OUTLETS

Sara Lee Corp., which is set to split into two separate companies in less than a week, disclosed that it's shedding its bakery outlet stores as part of the corporate makeover. Read more in Crain's

— The impending split will cost Sara Lee its place in the S&P 500 Index. After the company formally spins off its coffee and tea business and renames the remaining business Hillshire Brands on June 28, Sara Lee will after the close of trading be replaced on the S&P 500 by Monster Beverage Corp. Read the MarketWatch coverage

COSTLY STANDOFF

The Springfield standoff over reforming the state's pension plans is costing Illinois taxpayers $12.6 million a day, Gov. Pat Quinn averred after a two-hour meeting with top legislators failed to yield a reform deal, Greg Hinz reports. "Are we making progress? Yes, we are. Is it enough? No," said House Speaker Michael Madigan. Read Greg's blog here

BEGS TO DIFFER

In a pointed rebuttal to an op-ed piece in Crain's on Thursday — which argued that Gov. Pat Quinn should step in now and implement a health care exchange as called for under the Affordable Care Act — a representative of the Illinois Chamber of Commerce argues that such a move would be premature and, given the restrictions the state's Constitution places on such a move, "largely symbolic" as well. Here's the op-ed piece

JUST SAYING

About 163,000 families in Illinois will receive health insurance rebates that average $380 as a result of the federal health care overhaul, the Obama administration announced, days before the U.S. Supreme Court rules on whether the law in question is constitutional or not. If the High Court strikes down the law next week, the rebates could be voided. Read more in Crain's

THREE BUCKS A GALLON?

A slowing global economy could provide a bright spot for consumers: gasoline at $3 a gallon — or less — by autumn. Nationally, regular gasoline averages $3.47 a gallon, down 47 cents from this year's high in April (though Chicago prices are typically higher) and the trend is still downward. Read more in USA Today